Jack & Mary Jones are married in December 30, 2018, they have no children or dependents. Their divorce became final on December 31, 2018. Of the Income earned, Jack’s total income is $500,000 but his taxable income is $425,000.  

1. What is Jack’s Filing Status for 2018?

2. What is their Marginal Tax Rate for 2018?

3. What is his Tax Liability for 2018?

4. What is his Average Tax Rate

5. What is his effective Tax Rate of taxable income?

6. If Jack discover he has an additional tax deduction of $40,000 what is his new Marginal Tax Rate?

7. What is his Tax Savings at the New Rate?

Ruiz Co. provides the following sales forecast for the next four months:

The company wants to end each month with ending finished goods inventory equal to 40% of next month's forecasted sales. Finished goods inventory on April 1 is 248 units. Assume July's budgeted production is 650 units. In addition, each finished unit requires five pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month’s production needs. Beginning raw materials inventory for April was 978 pounds. Assume direct materials cost $5 per pound.

Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

Differential Analysis Report for Sales Promotion Proposal Rocket Shoe Company is planning a one-month campaign for August to promote sales of one of its two shoe products. A total of $105,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign. Cross-Trainer Shoe Running Shoe Unit selling price $40 $44 Unit production costs: Direct materials $ (7) $(10) Direct labor (2) (3) Variable factory overhead (2) (2) Fixed factory overhead (4) (5) Total unit production costs $(15) $(20) Unit variable selling expenses (13) (12) Unit fixed selling expenses (7) (5) Total unit costs $(35) $(37) Operating income per unit $ 5 $ 7 No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 30,000 additional units of cross-trainer shoes or 25,000 additional units of running shoes could be sold without changing the unit selling price of either product. Required: 1. Prepare a differential analysis report presenting the additional revenue and additional costs anticipated from the promotion of cross-trainer shoes and running shoes. Rocket Shoe Company Proposals for Sales Promotion Campaign Differential Analysis Report Cross-Trainer Shoes Running Shoe Differential revenue from proposals $ $ Differential cost of proposals: Direct materials $ $ Direct labor Variable factory overhead Variable selling expenses Sales promotion expenses Differential cost of proposals $ $ Net differential income from proposed sales promotion campaign $ $

1. If a company were to choose one inventory valuation method in the current year, and then decide in the following year to change inventory valuation methods to a method that better approximates the company’s actual costs:
2. 1. Would this be accounted for as a change in accounting estimate or a change in accounting principle?   (Provide the Codification reference for your answer)
3. 2. Where is the Example provided in the Codification that illustrates the guidance for the retrospective application of a change from LIFO to FIFO (assuming it is practicable to determine the cumulative effect of the change for all prior years)?   (Provide the Codification reference for your answer)

2. ABC Company is a manufacturing company. Based on the criteria in the Codification, explain why each of the following items would or would not be included in Inventory Cost for ABC.   (Provide the Codification reference for your answer)
3. 1. Expenses incurred for marketing to sell ABC’s inventory
4. 2. General & administrative expenses incurred by ABC that are not clearly related to production
5. 3. Normal freight charges paid by ABC to its suppliers for inventory items purchased
6. 4. Abnormally high freight charges paid by ABC to its suppliers for inventory items purchased

Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departments—Refining and Blending. Raw materials are introduced at various points in the Refining Department.

The following incomplete Work in Process account is available for the Refining Department for March:

The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,400; direct labor, $4,100; and overhead, $21,700.

Costs incurred during March in the Blending Department were: materials used, $44,000; direct labor, $17,300; and overhead cost applied to production, $102,000.

Required:

1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key your entries to the items (a) through (g) below.

1. Raw materials used in production.
2. Direct labor costs incurred.
3. Manufacturing overhead costs incurred for the entire factory, $676,000. (Credit Accounts Payable.)
4. Manufacturing overhead was applied to production using a predetermined overhead rate.
5. Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $662,000.
6. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $710,000.
7. Completed units were sold on account, $1,470,000. The Cost of Goods Sold was $680,000.

2. Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Refining Department’s Work in Process is given in the T-account shown above.)

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,075 hours each month to produce 2,150 sets of covers. The standard costs associated with this level of production are:

During August, the factory worked only 800 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month:

At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production.

Required:

1. Compute the materials price and quantity variances for August.

2. Compute the labor rate and efficiency variances for August.

3. Compute the variable overhead rate and efficiency variances for August.

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Robert Perez is a contractor specializing in custom-built jacuzzis. On May 1, 2017, his ledger contains the following data.
Raw Materials Inventory $30,000 Work in Process Inventory 12,200 Manufacturing Overhead 2,500 (dr.) The Manufacturing Overhead account has debit totals of $12,500 and credit totals of $10,000.

Subsidiary data for Work in Process Inventory on May 1 include: Job Cost Sheets Job Manufacturing by Customer Direct Materials Direct Labor Overhead Stiner $2,500 $2,000 $1,400 Alton 2,000 1,200 840 Herman 900 800 560 $5,400 $4,000 $2,800

During May, the following costs were incurred: Raw materials purchased on account $4,000, Labor paid $7,000, and Manufacturing Overhead paid $1,400.

A summary of materials requisition slips and time tickets for the month of May reveals the following. Job by Customer Materials Requisition Slips Time Tickets Stiner $ 500 $ 400 Alton 600 1,000 Herman 2,300 1,300 Smith 1,900 2,300 5,300 5,000 General use 1,500 2,000 $6,800 $7,000

Overhead was charged to jobs on the basis of $0.70 per dollar of direct labor cost. The Jacuzzis for customers Stiner, Alton, and Herman were completed during May. The three Jacuzzis were sold for a total of $36,000.
Instructions (a) Prepare journal entries for the May transactions: (i) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (ii) assignment of raw materials, labor, and overhead to production; and completion of jobs and(iii) sale of goods. (iii) Post the entries to Work in Process Inventory. Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. (MAKE A SHORT SCHEDULE FOR THIS.)

The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3:

The following five transactions occurred in Year 3:

1. First purchase (cash): 125 units @ $96
2. Second purchase (cash): 195 units @ $104
3. Sales (all cash): 375 units @ $200
4. Paid $16,100 cash for salaries expense
5. Paid cash for income tax at the rate of 25 percent of income before taxes
   

Required
a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method.
b. Use a vertical model to show the Year 3 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.)

Use a vertical model to prepare the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount. Amounts to be deducted should be indicated with a minus sign.)

a) In terms of the company's Act, set out the definition of distribution as well as three types of distribution.

b) A company’s directors may not authorize any proposed distribution unless it has complied with
which two tests?

c) Briefly discuss the meaning of ‘’financial assistance’’ in terms of company law.

d) With reference to case law, discuss the term securities in terms of company law.

he printout of the Revenues and Appropriations subsidiary ledger accounts for the General Fund of the City of Augusta for the first quarter of the fiscal year appeared as follows: Revenues Ledger Est. Revenues Revenues Balance Account Ref. Account Title Dr(Cr) Cr(Dr) Dr(Cr) 3/4020 Taxes—Real Property 101 Budget Authorization 764,000 764,000 102 Received in Cash 212,600 551,400 3/4050 Licenses and Permits 101 Budget Authorization 114,000 114,000 102 Received in Cash 11,400 102,600 3/4070 Intergovernmental Revenue 101 Budget Authorization 64,000 64,000 102 Received in Cash 16,400 47,600 103 13,900 61,500 Appropriations, Expenditures, and Encumbrances Ledger Encumbrances Increase Encumbrances Decrease Encumbrances Balance Expenditures Expenditures Balance Appropriation Balance Account Ref Account / Description Dr (Cr) Dr(Cr) Dr(Cr) Dr(Cr) Cr(Dr) Cr(Dr) 5/6/7020 General Government 101 Budget Authorization 649,000 649,000 102 Purchase Order Issued 7,100 7,100 641,900 102 Payroll 162,600 162,600 479,300 102 Goods Received 5,400 1,700 5,350 167,950 479,350 5/6/7030 Public Safety 101 Budget Authorization 139,000 139,000 102 Payroll 31,400 31,400 107,600 103 52,800 160,400 5/6/7050 Culture and Recreation 101 Budget Authorization 99,000 99,000 102 Purchase Order Issued 1,900 1,900 97,100 102 Goods Received 1,900 0 1,700 1,700 97,300 102 Payroll 15,700 17,400 81,600 5/6/7070 Miscellaneous 101 Budget Authorization 16,400 16,400

Required

Assuming that there are no other General Fund revenue or expenditure transactions, answer the following questions. What were the original approved budget amounts for Estimated Revenues and for Appropriations? (1) Was the budget adjusted during the year? (2) If so, which accounts if any were adjusted and by how much? (3) In total, has Budgetary Fund Balance increased, decreased, or remained the same during the first fiscal quarter?\ (1) What are the current balances of the Estimated Revenues and Appropriations control accounts? (2) What are the current balances of the Revenues, Encumbrances, and Expenditures control accounts?

Describe the purpose of U.S. generally accepted accounting principles (U.S. GAAP) and the benefits that these rules provide.

Tax 2018. Amos is a self-employed tax attorney. He and Monica, his employee, attend a conference in Dallas sponsored by the American Institute of CPAs. The following expenses are incurred during the trip:

1. Amos pays for all of these expenses. Calculate the effect of these expenses on Amos’s AGI.
2. Would your answer to part (a) change if the American Bar Association had sponsored the conference? Explain.

On January 1, 2020, Pearl Company makes the two following acquisitions.

The company has to pay 12% interest for funds from its bank.

(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Jan 21 A customer who owed $10,000 on an account receivable, agreed to sign a 60-day note receivable with an interest rate of 6.0%. The interest earned on the note will be paid at the maturity date of the note receivable.

Feb 10 Sanford Company sold the note receivable from Jan 21st to the bank, which discounted the note at 8.0%.

Required:

What is the correct journal entry for February 10th and why?